W Downtown’s Six Penthouse Deal

The W Downtown, the only W Hotel in Manhattan with private apartments, is offering a discount to a buyer who purchases a half-dozen penthouses together.

The Moinian Group, the developer, is hoping to entice either a big firm or private investor to buy all six remaining penthouses on the 55th and 56th floors of the 57-story tower, which is close to Wall Street in the Financial District. A broker for the hotel said the developer is willing to negotiate the price for those who buy in bulk.

There are seven unsold apartments left among the 223-unit private residences, including the six one-and-two bedroom penthouses and a unit on a lower level. The penthouses, which boast views of the Statue of Liberty, range in price from $2.5 million to$5 million.

Buyers of the remaining units will have access to a residents-only rooftop as well as to the W Hotel’s services, including 24/7 concierge, a fitness center, a spa as well as a private screening room.

“The ideal buyer of these six units is an investor, international corporation or local business needing world-class apartments with hotel services for their executives or visitors to the city,” said William Stafford IV, a broker at Compass, who is handling sales at the W Residences.

This is not the first time a bundle of apartments at the W Downtown has been offered for sale. Property records showed the developer sold a block of 32 condos to American Pacific International Capital last year for close to $27 million.

Some observers point to a struggling luxury market amid a flood of high-end condos and a weakening demand. However, Mr. Stafford said that the offer is not a reaction to the market, telling Mansion Global that it’s not unusual to offer such deals in Manhattan.

The W Downtown has had a checkered history. Itopened in 2010, but sales, which launched back in 2008 during the global economic downturn, were initially sluggish. It eventually broke price records for the area in 2014, but changed marketing strategies—and brokers—several times.

At one point, it announced that it was combining 12 units to create a 12,000-square-foot, $40 million duplex penthouse, which at the time would have been the most expensive listing in the area. The plan was later abandoned.

“The market has reset and what we’re seeing is developers adjusting to these new conditions,” saidJonathan Miller, the chief executive of appraisal firm Miller Samuel and market commentator. “Sales velocity over thelast year and a half has shifted lower as consumersat the high end don’t have the same set of priorities as in 2014.”

“It is unusual to see a bulk deal on penthouses. The idea of selling in bulk is not a typical marketing trajectory, but the market has changed and so too has marketing strategy,” Mr. Miller said.

Donna Olshan, president of Olshan Realty, added: “Typically we don’t see developers bundle apartments unless there’s some problem. If you’ve got something good you don’t have to bundle it and do some kind of wholesale, so I would say the optics on it aren’t good.”